S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 5967                                                  A. 8242

                       2015-2016 Regular Sessions

                      S E N A T E - A S S E M B L Y

                              June 14, 2015
                               ___________

IN  SENATE  --  Introduced by Sen. DeFRANCISCO -- read twice and ordered
  printed, and when printed to be committed to the Committee on Finance

IN ASSEMBLY -- Introduced by M. of A. BRENNAN, NOLAN --  read  once  and
  referred to the Committee on Ways and Means

AN  ACT  to  amend the public authorities law, the state finance law and
  the tax law, in relation to the  funding  of  the  multi-year  capital
  program   of  the  metropolitan  transportation  authority  and  other
  regional transportation systems; and making an appropriation therefor

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative  findings  and declaration of purpose. 1. The
metropolitan transportation  authority  (MTA),  regional  transportation
systems and other transportation infrastructure are essential to meeting
the  basic mobility and economic needs of the citizens in the state. The
contributions of such mass transportation services are also essential to
addressing fundamental environmental policy  and  social  needs  of  the
state's residents.
  2.  The  MTA, regional transportation systems and other transportation
infrastructure must continue to function  as  the  primary  provider  of
reasonably  priced,  safe and reliable mass transportation services.  It
is of vital importance to the ability of the metropolitan transportation
authority to meet the continued need for mobility and for  the  economic
health  of  the  MTA  and the state that additional dedicated sources of
reliable funding are made promptly available.
  3. It is the intent of the legislature to continue to fund the  multi-
year  capital  program  of  the  MTA  and  other regional transportation
systems to ensure the continuation of reasonable fares and provide for a
safe, reliable, efficient mass transportation system.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11661-02-5

S. 5967                             2                            A. 8242
              

  4. Multi-year investment in transportation infrastructure is  critical
to  economic  development and the safe and reliable movement of citizens
and goods in the state.
  S  2. Subdivision (a) of section 1225-g of the public authorities law,
as added by chapter 576 of the laws of  1972,  is  amended  to  read  as
follows:
  (a) To enable the fund to realize its public and governmental purpose,
the fund may enter into agreements with the transportation authority, to
which the transit authority may be a party, pursuant to which the trans-
portation authority may plan, design, construct, acquire, extend, recon-
struct, rehabilitate, modernize, or otherwise improve any transit facil-
ity,  and  the  fund  may  lease  any  such  transit  facility  from the
transportation authority. The fund may apply the resources of  the  fund
to  the  payment of rentals and other payments required from the fund by
any such lease or other agreement and may pledge such resources as secu-
rity for such payments to the transportation authority with  respect  to
such  leases or other agreements.  THE FUND SHALL ENTER INTO SUCH LEASES
OR OTHER AGREEMENTS WITH THE TRANSPORTATION AUTHORITY PROVIDING FOR  THE
PAYMENT  OF RENTALS AND OTHER PAYMENTS SUFFICIENT TO ALLOW THE TRANSPOR-
TATION AUTHORITY TO FINANCE THE COSTS OF PLANNING AND  DESIGN,  ACQUISI-
TION,  CONSTRUCTION,  RECONSTRUCTION, REPLACEMENT, IMPROVEMENT, RECONDI-
TIONING, REHABILITATION AND PRESERVATION, INCLUDING THE  ACQUISITION  OF
REAL  PROPERTY AND INTERESTS THEREIN REQUIRED OR EXPECTED TO BE REQUIRED
IN CONNECTION THEREWITH, OF  TRANSIT  FACILITIES,  NOT  TO  EXCEED  FOUR
BILLION  FIVE  HUNDRED  MILLION  DOLLARS, WHICH ARE CAPITAL ELEMENTS SET
FORTH IN THE TWO THOUSAND FIFTEEN--TWO THOUSAND NINETEEN CAPITAL PROGRAM
PLANS APPROVED BY  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY  CAPITAL
PROGRAM REVIEW BOARD.
  S  3.  Subdivision 1 of section 2799-gg of the public authorities law,
as amended by chapter 182 of the laws of 2009, is  amended  to  read  as
follows:
  1.  The  authority  shall have the power and is hereby authorized from
time to time to issue bonds, in conformity with applicable provisions of
the uniform commercial code, in such principal amounts as it may  deter-
mine  to  be  necessary pursuant to section twenty-seven hundred ninety-
nine-ff of this title to pay  the  cost  of  any  project  and  to  fund
reserves   to  secure  such  bonds,  including  incidental  expenses  in
connection therewith, AND TO PAY THE COST  OF  ANY  PROJECT  OR  ELEMENT
CONTAINED  IN  A  BUDGETED AND APPROVED CAPITAL PLAN OF THE METROPOLITAN
TRANSPORTATION AUTHORITY.
  The aggregate principal amount of such bonds,  notes  or  other  obli-
gations  outstanding  shall  not  exceed [thirteen billion, five hundred
million   dollars   ($13,500,000,000)]    EIGHTEEN    BILLION    DOLLARS
($18,000,000,000),  excluding  bonds,  notes or other obligations issued
pursuant to sections twenty-seven hundred ninety-nine-ss and twenty-sev-
en hundred ninety-nine-tt of this title; provided,  however,  that  upon
any  refunding  or  repayment  of  bonds (which term shall not, for this
purpose, include bond anticipation notes), the total aggregate principal
amount of outstanding bonds, notes or other obligations may  be  greater
than  [thirteen billion, five hundred million dollars ($13,500,000,000)]
EIGHTEEN BILLION DOLLARS ($18,000,000,000)  only  if  the  refunding  or
repayment  bonds,  notes  or other obligations were issued in accordance
with the provisions of subparagraph (a) of subdivision two of  paragraph
b  of  section  90.10  of the local finance law, as amended from time to
time. Notwithstanding the foregoing, bonds, notes or  other  obligations
issued by the authority may be outstanding in an amount greater than the

S. 5967                             3                            A. 8242

amount  permitted  by  the  preceding sentence, provided that such addi-
tional amount at issuance, together  with  the  amount  of  indebtedness
contracted  by  the  city  of  New  York,  shall  not  exceed  the limit
prescribed  by  section  104.00  of the local finance law. The authority
shall have the power from time to  time  to  refund  any  bonds  of  the
authority  by the issuance of new bonds whether the bonds to be refunded
have or have not matured, and may issue bonds partly to refund bonds  of
the authority then outstanding and partly to pay the cost of any project
pursuant  to  section twenty-seven hundred ninety-nine-ff of this title.
Bonds issued by the authority shall be payable solely out of  particular
revenues  or  other  moneys of the authority as may be designated in the
proceedings of the authority under which the bonds shall  be  authorized
to be issued, subject to any agreements entered into between the author-
ity  and  the  city,  and  subject to any agreements with the holders of
outstanding bonds pledging any particular revenues or moneys.
  S 4. Subdivision 3 of section 92-ff of the state finance law, as added
by section 1 of part G of chapter 25 of the laws of 2009, is amended  to
read as follows:
  3.  Such fund shall consist of all moneys collected [therefore] THERE-
FOR or credited or transferred thereto from any other fund,  account  or
source,  including,  without  limitation,  the revenues derived from the
metropolitan commuter transportation mobility  tax  imposed  by  article
twenty-three  of  the tax law; REVENUES DERIVED FROM SECTION SIX HUNDRED
NINETY-EIGHT-A OF THE TAX LAW; revenues derived from the special supple-
mental tax on passenger car rentals imposed by  section  eleven  hundred
sixty-six-a  of  the  tax  law; revenues derived from the transportation
surcharge imposed by article twenty-nine-A of the tax law;  the  supple-
mental  registration  fees imposed by article seventeen-C of the vehicle
and traffic law; and the supplemental metropolitan commuter  transporta-
tion  district license fees imposed by section five hundred three of the
vehicle and traffic law. Any interest received  by  the  comptroller  on
moneys on deposit in the metropolitan transportation authority financial
assistance fund shall be retained in and become a part of such fund.
  S 5. Section 698 of the tax law, as amended by chapter 477 of the laws
of 1998, is amended to read as follows:
  S  698.  Deposit and disposition of revenue.  [All] EXCEPT AS PROVIDED
IN SECTION SIX HUNDRED NINETY-EIGHT-A OF THIS PART, ALL taxes,  interest
and penalties collected or received by the commissioner under this arti-
cle  shall  be  deposited  and disposed of pursuant to the provisions of
section one hundred seventy-one-a of this chapter.  Notwithstanding  the
foregoing,  unemployment insurance contributions and payments and aggre-
gate withholding taxes collected or received by  the  commissioner  from
employers  in  a  single  remittance accompanying the quarterly combined
withholding, wage reporting and unemployment insurance returns  required
by  paragraph four of subsection (a) of section six hundred seventy-four
of this article shall, if necessary, be deposited into an account to  be
maintained jointly by the department and the department of labor at such
responsible bank, banking house or trust company as may be designated by
the  comptroller.   The comptroller shall require adequate security from
such depository. Such departments shall determine the proper  allocation
of the monies in such account as between unemployment insurance contrib-
utions and payments and aggregate withholding taxes. Unemployment insur-
ance  contributions and payments shall then be deposited and disposed of
pursuant to the provisions of title four  of  article  eighteen  of  the
labor  law,  and  aggregate  withholding  taxes  shall  be deposited and
disposed of pursuant to the provisions of sections one hundred  seventy-

S. 5967                             4                            A. 8242

one-a,  thirteen  hundred  thirteen and thirteen hundred thirty-three of
this chapter, as applicable.
  S  6.  The tax law is amended by adding a new section 698-a to read as
follows:
  S 698-A. DEPOSIT AND DISPOSITION OF CERTAIN REVENUE.   NOTWITHSTANDING
THE  PROVISIONS  OF SECTION SIX HUNDRED NINETY-EIGHT OF THIS PART TO THE
CONTRARY, FOR TAXABLE YEAR TWO THOUSAND FIFTEEN, ONE-HALF (.5)  PERCENT;
FOR  TAXABLE  YEAR  TWO THOUSAND SIXTEEN, ONE (1.0) PERCENT; FOR TAXABLE
YEAR TWO THOUSAND SEVENTEEN, ONE AND ONE-HALF  (1.5)  PERCENT;  AND  FOR
TAXABLE  YEARS  BEGINNING IN TWO THOUSAND EIGHTEEN AND EVERY YEAR THERE-
AFTER, TWO (2.0) PERCENT OF THE TAXES, INTEREST AND PENALTIES  COLLECTED
OR  RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE SHALL BE DISTRIBUTED
AS FOLLOWS:
  (A) EIGHTY-FIVE PERCENT OF THE FUNDS GENERATED FROM TAXPAYERS RESIDING
IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT ESTABLISHED  PURSU-
ANT  TO  SECTION  TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW
SHALL BE DEPOSITED AND DISPOSED OF PURSUANT  TO  SECTION  EIGHT  HUNDRED
FIVE  OF THIS CHAPTER; TEN PERCENT OF THE FUNDS GENERATED FROM TAXPAYERS
RESIDING IN THE METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT  ESTAB-
LISHED  PURSUANT  TO  SECTION  TWELVE  HUNDRED  SIXTY-TWO  OF THE PUBLIC
AUTHORITIES LAW SHALL BE DEPOSITED INTO THE DEDICATED HIGHWAY AND BRIDGE
TRUST FUND; AND FIVE PERCENT  OF  THE  FUNDS  GENERATED  FROM  TAXPAYERS
RESIDING  IN  THE  METROPOLITAN  COMMUTER TRANSPORTATION DISTRICT ESTAB-
LISHED PURSUANT TO  SECTION  TWELVE  HUNDRED  SIXTY-TWO  OF  THE  PUBLIC
AUTHORITIES  LAW  SHALL BE DEPOSITED INTO THE DEDICATED MASS TRANSPORTA-
TION TRUST FUND TO THE CREDIT OF THE  NON-MTA  ACCOUNT  FOR  PAYMENT  TO
DOWNSTATE  TRANSIT  SYSTEMS OTHER THAN THOSE TRANSIT SYSTEMS OPERATED BY
THE METROPOLITAN TRANSPORTATION AUTHORITY.
  (B) THE FUNDS GENERATED FROM THE TAXPAYERS  RESIDING  OUTSIDE  OF  THE
METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT ESTABLISHED PURSUANT TO
SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW SHALL  BE
DEPOSITED  AS FOLLOWS: THIRTY PERCENT OF THE REVENUES SHALL BE DEPOSITED
INTO THE DEDICATED MASS TRANSPORTATION TRUST FUND TO THE CREDIT  OF  THE
NON-MTA  ACCOUNT  FOR  PAYMENT  TO  UPSTATE  TRANSIT SYSTEMS AND SEVENTY
PERCENT OF THE REVENUES SHALL BE DEPOSITED INTO  THE  DEDICATED  HIGHWAY
AND BRIDGE TRUST FUND.
  S 7. Subsection (a) of section 805 of the tax law, as added by section
1  of  part  C  of chapter 25 of the laws of 2009, is amended to read as
follows:
  (a) The taxes, interest, and penalties imposed by this article AND  BY
SECTION  SIX  HUNDRED  NINETY-EIGHT-A  OF  THIS CHAPTER and collected or
received by the commissioner shall be deposited daily with such  respon-
sible  banks, banking houses or trust companies, as may be designated by
the comptroller, to the credit of  the  comptroller  in  trust  for  the
metropolitan  transportation authority. An account may be established in
one or more of such depositories. Such deposits will  be  kept  separate
and apart from all other money in the possession of the comptroller. The
comptroller  shall require adequate security from all such depositories.
Of the total revenue collected or received under this article, the comp-
troller shall retain such amount as the commissioner may determine to be
necessary for refunds under this article. The commissioner is authorized
and directed to deduct from the amounts it receives under this  article,
before  deposit into the trust accounts designated by the comptroller, a
reasonable amount necessary to effectuate refunds of  appropriations  of
the  department  to  reimburse  the department for the costs incurred to
administer, collect and distribute the taxes imposed by this article.

S. 5967                             5                            A. 8242

  S 8.  The sum of one billion dollars ($1,000,000,000),  or  such  much
thereof as may be  necessary, is hereby appropriated to the metropolitan
transportation  authority  from  any moneys in the state treasury in the
capital projects fund - dedicated infrastructure investment fund to  the
credit of the infrastructure investment account - special infrastructure
purpose,  not  otherwise appropriated, for the costs of capital projects
for the planning and design, acquisition, construction,  reconstruction,
replacement,  improvement,  reconditioning, rehabilitation and preserva-
tion, including the acquisition of real property and  interests  therein
required  or  expected  to be required in connection therewith, of urban
and commuter passenger, freight rail, omnibus, mass  transit  and  rapid
transit  systems, facilities and equipment, including acquisition, which
are capital elements set forth in the 2015-2019  capital  program  plans
approved  by  the  metropolitan transportation authority capital program
review board. Such sum shall be payable on the audit and warrant of  the
state  comptroller on vouchers certified or approved by the metropolitan
transportation authority, or its duly designated representative  in  the
manner provided by law. No expenditure shall be made from this appropri-
ation  until  a  certificate of approval of availability shall have been
issued by the director of the budget and  filed  with  the  state  comp-
troller  and a copy filed with the chair of the senate finance committee
and the chair of the assembly ways and means committee. Such certificate
may be amended from time to time by the director of  the  budget  and  a
copy  of  each such amendment shall be filed with the state comptroller,
the chair of the senate finance committee and the chair of the  assembly
ways and means committee.
  S  9. Additional allocation. Any bank or insurance settlement proceeds
received by the state above the first one billion  dollars  provided  to
the  metropolitan  transportation  authority under section eight of this
act but not to exceed three hundred  million  shall  be  distributed  as
follows  34  percent  to the dedicated mass transportation trust fund to
the credit of the non-MTA account and 66 percent to the dedicated  high-
way  and  bridge trust fund.  Funds authorized by this section shall not
supplant any existing revenues  authorized  for  distribution  into  the
dedicated mass transportation trust fund.
  S 10. This act shall take effect April 1, 2016.